Despite the increasing prevalence of credit and debit card transactions in our daily lives, why do dispensaries continue to only deal in cash? The main reason for this is because many banks and financial institutions are unwilling to offer services to cannabis dispensaries due to federal laws. Even though marijuana has been legalized or decriminalized in some states, it is still classified as an illegal drug under federal law. As a result, financial institutions that are regulated by the Federal Reserve have chosen not to serve these businesses due to fear of potential legal repercussions.
This lack of access to banking services means that dispensaries need to operate strictly on cash-only basis. This can be inconvenient for customers who do not carry large amounts of cash with them at all times. Additionally, it means that dispensaries must take extra measures to ensure their cash is safe and secure, such as investing in security systems and hiring additional staff to manage the handling of cash.
Despite these challenges, there has recently been a push from legislators to enable access to financial services for marijuana businesses. This could potentially provide an easier way for dispensaries to accept payment while adhering to existing laws. Time will tell if this legislation is successful in providing financial relief to cannabis businesses. Until then, why do dispensaries only deal in cash? As explained above, it is mainly due to lack of access to banking services because of federal laws prohibiting marijuana use.
However, even with the current restrictions in place, it’s clear why dispensaries have chosen to keep their operations strictly cash-only. Not only is this a safe and secure way of conducting business, but it also helps to protect businesses from potential legal repercussions due to federal laws. Ultimately, why do dispensaries only deal in cash? The answer lies in our country’s complicated relationship with marijuana and its ongoing prohibition at the federal level. Until that changes, cash will remain king for dispensary transactions.